Been sitting with a vacant property for far too long. I think it’s mostly because of some rednecks next door who are waving confederate flags in their backyard.... classy. I know.
But I have a renter who just applied.
Pros: willing to pay 6 months rent in advance
- large cash reserves
Cons: 23 years old
- no renter history.
- self-employed and no tax returns
Would you qualify this tenant?
I asked him to get a co-signer. He said he doesn’t have anyone who is willing to do that for him.
I considered asking him to double his security deposit. But not sure that would fully help alleviate the risk. Mostly worried he will trash the place.
This may be a little but if a nervous post by me. I just got burned by my last tenant who left some significant damages without any way to pay for them. I might be a little on the paranoid side.
Please help me BiggerPockets universe!!!
That's interesting. Just curious, what kind of work does he do to be 23 with large sums of cash but no tax returns?
If there was the potential for ANY other decent tenants, I would probably pass on him. He may just be a super successful 23 year old with no friends or family, but it sounds like a lot of potential for red flags.
I do have a thought if you don't have any better options, and it may be more trouble than it's worth... what if you did a high deposit and a month to month lease for a few months as a "trial period" to get to April/May (aka the beginning of good rental season.) At the end of the trial period you can decide whether you want to have him sign a longer lease. That way your future lease will at least be beginning and ending in May or June which may be an easier time to get tenants.
Edited to add: Does he have credit? If he has good credit and a solid history of paying his bills that would help his case a bit.
Pass. Reasons..... 6 month pre pay bribe, no rental history at 23, self employed, no tax returns and no one willing to co-sigh are all major red flags.
A vacancy will be far less expensive than a eviction but if you are desperate take the bribe, charge a 2 month deposit, sign a M2M lease and take your chances.
Make sure you have all the money in cash before you hand over the keys.
See if he can provide you with any proof of income that he didn’t put on his tax returns. Previous bank statements showing deposits, website screenshots or PayPal transactions if he does freelancing work. Although like the others have said, I recommend holding out for someone that does meet your rental qualifications. It’ll end up saving you money if something goes wrong, and the headache of the eviction process.
@Cassi Justiz have not run the credit check or anything yet. Will though! He says he’s got good credit but ya know...
@Tony Crabtree got a ghost on your hands. I’d just ask for any verification of income had and run a credit check. Even if someone is self employed there has to be some kind of docs.
Maybe grab a 3rd party to help you market this unit if it sits longer!
Have him complete your rental application, find out how he is employed, ask for bank statements, run his credit and background check, ask for references,,,, if all that checks out, then i would not be too worried. Do a MTM, get a good deposit. Good luck!
month to month trial.